On January 10, 2024, the US Securities and Exchange Commission officially approved Bitcoin ETF applications from 11 funds, including those from Fidelity, Grayscale, and Blackrock’s iBIT. In the month that followed, trading volumes surged as banks, funds, and individual traders began acquiring shares. One notable institution gradually increasing its Bitcoin ETF exposure is Morgan Stanley.
According to a recent 13F-HR/A filing with the SEC, Morgan Stanley reported $272 million invested in Bitcoin ETFs at the close of the third quarter. While this investment might appear substantial, it represents merely 2% of the firm’s total assets under management, which are currently valued at $1.3 trillion.
Massive news! 🚨 Morgan Stanley, a $1.3 trillion asset manager, just disclosed $272 million in Bitcoin ETF holdings. This is a clear sign that institutional adoption is accelerating. As more major players like Morgan Stanley continue buying into Bitcoin, it’s creating… https://t.co/bkCt59bSrD
— Jimie (@Your_NLP_Coach) October 18, 2024
Morgan Stanley’s BTC Holdings Diversified Among Blackrock, Ark21, Grayscale Funds
Morgan Stanley diversifies its investments across various funds, similar to a seasoned trader. A significant portion of its holdings is invested in Blackrock’s iShare Bitcoin Trust (IBIT). The firm has reported owning 5.5 million shares of this BTC ETF, purchased in the second quarter. The value of Morgan Stanley’s Blackrock holdings was $187.7 million at the time of acquisition, and it has since grown to $209 million, marking a 10.2% increase.
Additionally, Morgan Stanley indicated it maintains substantial investments with Ark 21 Shares but has scaled back its position in Grayscale. Initially, the firm held $270 million in Grayscale investments; however, this figure has now plummeted to $148,000.
Morgan Stanley and Its Crypto-Friendly Approach
As one of the leading asset managers, Morgan Stanley is adopting a Bitcoin and crypto-friendly investment strategy. Although the firm was somewhat late to the Bitcoin ETF scene, it has effectively built one of the largest portfolios in the United States.
In August 2024, the company authorized its managers to provide Bitcoin ETFs as an investment option for its affluent clients. Given its extensive asset base, this represents a significant strategic move for the company. For instance, if even 1% of the firm’s assets were allocated to Bitcoin ETFs, this would result in an influx of $130 billion.
Bitcoin ETFs Maintain Momentum
The SEC’s endorsement of spot ETFs has been transformative for the industry. Analyst Kripto Mevsimi highlights that Bitcoin is evolving into a more established asset, increasingly becoming a vital component of the financial market.
The market continues to show strong support for Bitcoin ETFs, with impressive net inflows noted over the past four days. Funds accumulated over $470 million worth of BTC yesterday, marking an increase from Wednesday’s figures. IBIT led the pack with an impressive inflow of $309 million, while ARKB also had a remarkable day, recording an inflow of $100.2 million. GBTC contributed positively as well, with an influx of $45.7 million yesterday.
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